As of late 2025, the U.S. economy is feeling the effects of stubborn inflation and high interest rates. Mortgage rates have stayed high, with the average 30-year fixed loan at about 6.54%. Even though the Federal Reserve began lowering rates in 2024, mortgage rates quickly climbed back above 7% in early 2025. This suggests that inflation is still a major concern and the economy remains uncertain. Experts say we likely won’t see the super-low mortgage rates of the pandemic years again unless a major economic crisis happens. On the bright side, high-yield savings accounts are offering better returns, with interest rates of 4–5%, which can help savers grow their money faster during this high-rate period.

Planning for retirement is more important than ever, especially with inflation slowing and interest rates possibly going down. Wealthy retirees succeed by following smart money habits. One key habit is “paying yourself first,” which means saving part of your income before spending on anything else. They also avoid letting their money sit in regular bank accounts by investing in things like stocks, ETFs (exchange-traded funds), or high-yield savings accounts that currently offer 4% to 5% interest. This helps their money grow and protects it from losing value due to inflation. Another smart habit is living below their means—spending less than they make—so they can consistently save and invest for the future. These strategies can help anyone build a stronger, more secure retirement.